Multiple choice

The amount which is given to the petty cashier at the beginning of a certain period, is known as

  1. initial amount

  2. beginning amount

  3. imprest amount

  4. None of these
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C Correct answer
Explanation

Under the imprest system of petty cash, a fixed sum of money is provided to the petty cashier at the start of a period. This fixed amount is called the imprest amount or float. At the end of the period, the petty cashier is reimbursed for the exact amount spent to restore the balance to the original imprest level.

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